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Thursday, March 28, 2024

Villar bill shields OFW money vs malpractices

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Senator Cynthia Villar eyes stronger state protection for the hard-earned money of overseas Filipino workers who send it to their respective families in the Philippines.

Toward this end, Villar filed Senate Bill No. 101 labeled “Overseas Filipino Workers (OFWs) Remittance Protection Act” which seeks to shield the OFWs’ remittances from malevolent forces.

In filing the measure, Villar cited the government’s declaration of policy recognizing the significant contribution of OFWs to the national economy through their foreign exchange remittances.

She noted that the state should adopt measures to protect the  hard-earned money the OFWs send back home against usurious interests and exorbitant fees charged by financial institutions that deplete the value of the remittances. 

“The state shall also provide them and their families adequate education and training on financial literacy, such as financial planning and savings,” Villar said.

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She added that these would help ensure a source of livelihood even after the OFWs employment abroad.

The senator said her bills intends to lessen the burden on OFWs in sending remittances by minimizing the remittance fees imposed by intermediaries and deducting tax to intermediaries based on the services rendered to OFWs.

Villar emphasized that the remittances from working abroad were dependable source of funds for the OFWs and their families.

She recalled that cash remittances sent by OFWs last year hit a new high, reflecting the improvement in the global economy amid the coronavirus disease.

Based on the data released by the Bangko Sentral ng Pilipinas (BSP), remittances coursed through banks rose by 5.1 percent or $31.418 billion in 2021 from $29.903 billion in 2020.

The United States was the biggest source of remittances at 40 percent in 2021, followed by Singapore, Saudi Arabia, Japan, the United Kingdom, the United Arab Emirates, Canada, Taiwan, Qatar, and South Korea.

These countries, Villar said, accounted for more than 3/4 or 79.8 percent of cash remittances during the year.

According to Villar, the contribution of migrant workers to the Philippine economy is greatly appreciated and the inflow of remittances from overseas Filipinos remained resilient amid the lingering COVID pandemic.

Due to high paying jobs overseas, Villar said many Filipinos aspire to work abroad. This also give them the opportunity to secure a better quality of life and future for their families and loved ones.

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